1.A Marketing Proposal by A Creative Zoo

2. Todays Agenda Who is A Creative Zoo and what is our philosophy? About Progressive Insurance Current Pet Industry Statistics and Trends Market Analysis and Target Segments Promotional Strategies Final Statement2 3. A Creative Zoo AnimalsChristina Dejan Angela Echandia,Cara Loffredo,Chung, PricingDjordjevic, MarketingMarket InsightLead ProjectManagerAnalystManager and herManager and herand her terrier Pip and his hound Oliverpersian Zoey havanese Penelope3 4. A Creative Zoo PhilosophyWau wau, Bow wow, Miau, meow. Thats our language.At A Creative Zoo, we believe no pet is too drooly, too2009 Webby Award forfuzzy or too wrinkly for the best love and care possible.Responsible MarketingOur team of animals strive to improve the lives of allcreatures by telling their stories through innovativemarketing strategies for companies and organizations 2010 MarketingMagazines Loyaltyserving animals. Through our work, we launch products Marketing Awardand ideas built around a philosophy of companionshipand loyalty for mans best friend and the brand we arenurturing alike.A Creative Zoo began quacking in 2006 and is the U.S.s2010 Eukanuba World Challenge Award forfirst marketing agency catering solely to animals.Canine Companionship4 5. Growth Through Innovation In 9 years, Progressive grew 17% per year, from $3.4billion to $14 billion Currently, Progressive writes over 10 million policies From cars, to Segways, to RVs Auto Insurance Truck Insurance Local Car Insurance Homeowners Insurance Motorcycle Insurance Renters Insurance Boat Insurance Life Insurance RV Insurance Health Insurance Commercial Auto Insurance Umbrella Insurance5 6. A Company of Firsts First to automatically insure your pet if they are in a collision First to offer premium payments in installments First to introduce auto insurance rate comparison First to introduce Immediate Response Vehicle to the scene of aclaim or accident First major auto insurer in the world to launch a web site First to sell auto insurance policies online in real time6 7. Progressive Market Share Rhode Island : 17.2% South Dakota : 14.7% Vermont : 13.3% Wyoming : 12.8% Minnesota : 12.5% Iowa : 12.3% North Dakota : 11.8% Georgia : 11.7% Maine : 11.5% Ohio : 11.5% Nebraska : 10.7% Florida : 10.6% Mississippi : 10.5%7 8. Pets Best as Progressive Pet Insurance Simply the best pet insurance 6 - years in the market and 3% market share Core Brand Values: security, protection, prosperity Advertising Appeal: FEAR, fear of having to pay high vetbills or fear of losing your pet Pricing Strategy: Competition Based Three Plans: Pets Basic, Pets First, Pets Premier8 9. Breaking Ties with Pets Best Progressives claim to lots of options, petInsurance is a natural next step Progressive has existing strong brand Pets Best has low market share Pets Best brand is not recognizable Can offer more competitive premiums byeliminating outsourcing9 10. The Pet Industry: Spending Statistics 38.9 million households own cats and 46.3 million households own dogs Americans spent $48.35 billion on their pets in 2010 $13.1 billion was spent on veterinary bills in 2010, up 9% in 2009 Pet insurance industry will grow from a $332 million dollar industry in 2009 to a projected $600 million industry by 201310 11. The Pet Industry: Industry Trends Going to the DogsCompanies traditionally known forhuman products are now creatingextensive pet product lines Martha Stewart Pet Collections Rachel Ray Nutrish PremiumDog Food Pet Products Sold HereShopping for pet products isbecoming easier than ever with anincreasing variety of retail outletsnow selling pet products11 12. The Pet Industry: Owner TrendsCompanionship. Having a routine.Investing in life.Greetings, from theCreating a family Filling a social gap.WHOLE family. bond. Pets are the Experiencing newMy pet is ateachers.activities. reflection of me.12 13. The Pet Industry: Pet Industry Market Share Market Share of US Pet Insurance Companies in 2009 80% 60% 40% 20% 0% VPI Hartville PetHealth PetPets Best RemainderGroup Inc. Partners(AKC)13 14. The Pet Industry: Competitive PricingPets Best Pet Partners(Progressive) VPI PetPlan Purina(AKC) Kind of AnimalsCats & DogsCats & Dogs, Exotic Cats & Dogs Cats & DogsCats & Dogs Plan NamePets PremierVPI Major Medical Gold Plan Wellness Plus PlanPurina Care PlusPlan Monthly $82.78$59.11$60.67$141.50$54.04 Premium$250 per $50 per Incident$125 Annual$250 Annual Deductible Incident $100 Annual20% None10% 20%20% Co-Pay Accidents &YesYes Yes YesYes Illness Years in6 Years5 Years 8 Years3 Years Business 29 Years Aetna Insurance Co. AGCS MarineMarkel InsuranceCentral States Underwriterof CTVPI Insurance,Insurance CompanyCompany Indemnity Company Nationwide Insurance14 15. Progressive Pet Insurance: Goals Launch Progressive Pet Insurance to limited test regions in 2012 Increase market share by 5% by increasing clienteleo Target segments with specific characteristicso Capitalize on current progressive customers15 16. Progressive Pet Insurance: Goal#1 Increase market share by 5% by increasing clienteleo Target segments with specific characteristicso Capitalize on current progressive customers16 17. Progressive Pet Insurance: Market Share Goal Progressive Pet Insurance Goal to Increase MarketShare +5% from 3% in 2009 to 8% in 2013 10% 8% 6% 4%Share 2% 0% 200920102011 2012 201317 18. Progressive Pet Insurance: Goal #2 Launch Progressive Pet Insurance to limited test regions in 201218 19. Progressive Pet Insurance: Testing Regions19 20. Progressive Pet Insurance: Pets Per State20 21. Progressive Pet Insurance: Product Strategy Breaking ties with Pets Best Bring in-house to reduce expenses and pass the savings onto the customer The advantage of being able to build your own product" by designing bundle packages and saving money21 22. Progressive Pet Insurance: Target Segments Individual OwnersEmployee Benefits22 23. Progressive Pet Insurance: Individuals Why do they buy pet insurance? Pet parents want the same treatment options for their pets as they receive for themselves Pet parents view their pets as their children They want to protect their savings and income They are buying peace of mind23 24. Progressive Pet Insurance: The Starter FamilyDavid and Mark David (31) and Mark (29) Live inAtlanta, Georgia Both work full-time in Marketingresearch and sales David gave Mark their dog, Raulito,as a 9th anniversary present Mark is always on the hunt for thelatest fashion for Raulito and enjoystaking photos on his iphone of himMy pet is aCreating a family reflection of me.bond. Filling a social gap.24 25. Progressive Pet Insurance: The All-American FamilyVictoria and Thomas Victoria (35) and Thomas (36) met duringcollege and live with their growing familyin St. Petersburg, FL They have a daughter Ana (6) and sonWill (8) who view Teddy, their dog as theirbest friend Thomas has an MBA and works as afinancial consultant Victoria, is an interior designer and worksfor a TV channel. The family currently has auto and homeinsurance through a bundle rate withProgressiveCreating a familyGreetings, from the bond.WHOLE family.Pets are the teachers.25 26. Progressive Pet Insurance: The Empty Nesters Brian and Elizabeth Brian (66) and Elizabeth (63) live in Lancaster, Ohio They have a daughter, Victoria (35), who has a family of her own Elizabeth and Brian are both retired Elizabeth rescued their dog Lola and cat Rocky from a local shelter, where she now volunteers on the weekend They enjoy cooking and are avid coupon- cutters, always on the hunt for the best dealsCompanionship. Having a routine.Investing in life.26 27. Progressive Pet Insurance: The SingleJacob Jacob (33) lives in Jacksonville, FL He lives alone with his dog, Maggie, allhis family live in Chicago He is doing a PHD at MIT. Jacob leads an active lifestyle withMaggie and trains for marathons Jacob is an avid reader and brings hisiPad everywhereCompanionship.Filling a social gap.27 28. Progressive Pet Insurance: Corporate Targets Who currently offers pet insurance as a benefit? VPI is the leader among Fortune 500 companies No fees to the employer to offer pet insurance Employees receive a 5% discount when enrolled through their company Most companies allow employees the opportunity to pay their premiums via payroll deduction28 29. Progressive Pet Insurance: Corporate Targets Located in Dublin, Ohio Located in Cobb County, Ranked 19 in the Fortune 500s Georgia Employ more than 30,000 Ranked 29 in the Fortune 500s people worldwide 2,200 retail stores with over Do not currently offer pet321,000 employees insurance Currently offer pet insurance to Offering pet insurance wouldtheir employees align with Cardinals mission of Aligns with Home Depots #1 innovation and diversityvalue of taking care of our people29 30. Progressive Pet Insurance: Individual Target Elimination All-Employee American BenefitsFamily30 31. Progressive Pet Insurance: Progressive Pricing Model Individual SingleIndividual BundleCorporate Benefit Plan Policy Policy Kind of Animals: Cats & Dogs 8% Discount off Premium:0-50 employees: 5% discountAdd pet insurance to any one Premium: $58/month 51-100 employees: 6% discountadditional insurance plan Co-Pay: None 101300 employees: 7%10% Discount: off Premium discount Illness and Accident: yesAdd pet insurance to two ormore additional insurance plans 301- 500 employees: 8% Hereditary: yes discount Underwriter: Progressive501+ employees: 10% discount Member discounts at national Member discounts at nationalMember discounts at national pet supply companies pet supply companiespet supply companies Automatic coverage for all Automatic coverage for allAutomatic coverage for all vehicle related injury vehicle related injuryvehicle related injuryNo fee to the employer31 32. Progressive Pet Insurance: Distribution Methods Capitalize off the traditionalProgressive channels that arealready successful All methods allow acustomizable build your ownproduct experience Call Centers Online Direct Agents32 33. PROMOTIONAL STRATEGIES 34. Progressive Pet Insurance: Promotional Strategy Bring Your Pet Homecampaign Continue the humorousadvertising strategy with Flo Create activities that allowpeople to get involved withFlo and Pickles34 35. Progressive Pet Insurance: Promotional Tactics Event Sponsor Television & Print In-Office Online Efforts Information35 36. SPONSORSHIP EVENTS 37. Progressive Pet Insurance: Event Sponsors Charity Walks Dog Shows37 38. Progressive Pet Insurance: Event SponsorsMSPCA-Angell Walkfor Animals The largest walk to benefitanimals Captive audience ofapproximately 3,000 MSPCA-Angells wide audience(circ. 75,000)38 39. Progressive Pet Insurance: Event SponsorsTACTICS: MSPCA-AngellWalk for Animals Progressive RehydrationStations Tents with Progressiveinsurance information Free promotional items withProgressive logo (leashes,Frisbees, tennis balls, cat toys) Integration with T.V., internetand print advertising tactic39 40. Progressive Pet Insurance: Event SponsorsWestminster Kennel ClubDog Show Over 7.5 million viewers over 2days Americas second-longestcontinuously held sportingevent, behind only the KentuckyDerby Broadcasts on USA TelevisionNetwork 25 to 54 viewing age40 41. Progressive Pet Insurance: Event SponsorsTACTIC: WestminsterKennel Club Dog Show Arena advertising T.V. commercial during show Backstage with Flo as Best inShow dog groomer Get Insurance, protect your petfrom Flos bad grooming skills41 42. IN-OFFICE EDUCATION 43. Progressive Pet Insurance: In-Office Education Vet Office Waiting Rooms Over 29,000 vet offices in the U.S. Trusted source of information Ability to present detailed information that the visitor can take home43 44. Progressive Pet Insurance: In-Office Education Promotional Strategies Brochures with plan benefits and comparisons 30-days free coverage when referred from your vet44 45. ONLINE PROMOTIONAL EFFORTS 46. Progressive Pet Insurance: Online AdvertisingBanner AdsPay Per ClickOnlinePurchasingIncentivesSocial Media 47. Progressive Pet Insurance: Online AdvertisingBanner Example:Petfinder.com Directory of more than 13,000 animal shelters and adoption organizations across the U.S., Canada and Mexico Not Just Adoption. Information on pet care, health and training Ability to customize our message per site48 48. 50 49. Progressive Pet Insurance: Online AdvertisingPay Per Click Expand our reach easily Steal from the competition Customize our message depending on search 165,000 searches on pet insurance per month51 50. Progressive Pet Insurance: Online AdvertisingOnline Incentives: $50 giftcard to wag.com with policypurchase Encourages online enrollment Entice prospects with buying perks Extend the incentive to member referrals52 51. SOCIAL MEDIA EFFORTS 52. Progressive Pet Insurance: Social Media Efforts Progressive on Facebook 3.2 million fans of Flo Facebook pages for differentinsurance needs Flow the progressive girl Help Flo Progressive motorcycle The Progressive messenger54 53. Progressive Pet Insurance: Social Media Efforts Facebook Tactic: Pickles Video Series Launch a Pickles Facebook Page Create interactive opportunities to drive viewers to Progressive website55 54. Progressive Pet Insurance: Social Media Efforts Facebook Tactic: Fan of the Week Contest Fans post funny pictures of their pets One winner every week spotlighted on profile page56 55. Progressive Pet Insurance: Social Media Efforts Twitter: @itsflo 6,293 followers Uses hashtag to generate buzz #DressLikeFlo57 56. Progressive Pet Insurance: Social Media Efforts ItsFlo Flo from progressive Twitter Tactic Pickles just told me the funniest story. progressive.com/pickles #progressivepickles Tweets around the Flo 5 hours ago reply retweet favorite pet whisperer themeand Pickles ItsFlo Flo from progressive Pickles and I just came from a commercial shoot. tail waggin funny! Generate buzz about #progressivepicklesPickles to drive 2 hours ago reply retweet favoritefollowers to the website ItsFlo Flo from progressive Pickles and I just ate fried pickles! #progressivepickles 1 day ago reply retweet favorite58 57. TELEVISION ADVERTISING 58. Progressive Pet Insurance: Television AdvertisingEmpty Nesters Audience between 24 - 64 Affluent viewers enables viewers to connect their own lives to the past60 59. Progressive Pet Insurance: Television AdvertisingCouples 59% of audience are adults 25 - 54 54% shopped for travel online in the past 6 months Most viewers have no children at home61 60. Progressive Pet Insurance: Television AdvertisingAll-American Family 58% of audience are adults 18 49 Median Household income of $80,000+ 62% of viewers own their own home62 61. Progressive Pet Insurance: Television AdvertisingPickles Gets a Job(Flo is at the Progressive store at the counter checking out dogs and cats who are in line to buy pet insurance.)Flo: And heres one for you. Have a great day. Oh! And make sure to go get that itch checked out!Flo: Here you go, one cat policy coming up(Pet owner approaches the counter)Pet Owner: Hey whats going on, what is my pet doing here?Flo: Oh! Havent you heard!? Progressive now covers your pets too! You can save a bundle when you bundle!(Flo whispers to the owner) All the pets are talking about it.(camera shifts to a dog leaving the store with a pet policy box in its mouth while another dog is entering thestore. The entering dog looks back to check out what policy the exiting dog just bought.)(Pickles runs up to the counter and barks twice at Flo)Flo: Pickles is it? (Pickles barks once) As a matter of fact we are hiring (Pickles tail starts wagging)Cut to a white screen where we see a progressive logo appear. Pickles is sitting next to the logo. We hearpickles bark.Voice-Over: Caring for you and your loved ones. Now thats Progressive. Call or click today. 62. PRINT ADVERTISING 63. Progressive Pet Insurance: Print AdvertisingEmpty Nesters Reaches over 13.2 millionreaders Median reader age is 49 Has advertised inNewsweek 16 times sinceJanuary, 201165 64. Progressive Pet Insurance: Print AdvertisingThe Couple 1 in 5 adults read People 69% of readers arebetween the ages of 18 -49 35% of readers aremillennials (1977-1994) Have advertised 10 timesin People since January,201166 65. Progressive Pet Insurance: Print AdvertisingAll-American Family Reaches over 7 millionbuyer conscious readers 60% of readers betweenthe ages of 18 49 41% of readers aremarried with kids Have advertised 8 timesin Real Simple sinceJanuary 201167 66. Non-Policy Holders 67. Progressive Policy Holders 68. Final Statements Progressive is anestablished, trusted namein insurance The pet industry is agrowing, multi-million dollarindustry Capitalize off of loyalcustomer base and informof the new service throughan integrated marketingstrategy70